Serviced residences - also known as serviced apartments, aparthotels or extended stay spartment - are established as an alternative to classical hotels in the US, Asia and parts of Western Europe. In Central Europe however, the sector is still underdeveloped, even though the demand for such alternative accommodation is rising fast.
Serviced residences are an attractive alternative to hotels for guests, mainly business travelers, as they provide more comfort through more space at better rates as a hotel. For the owners serviced residences provide the advantage of higher occupancy rates mainly from corporate clients providing more stable income than the classical hotel sector. In addition, serviced residences can be operated at much lower cost level than hotels which results in higher EBITDA margins and thus a higher return potential for investors.
Julius Meinl Living aims to benefit from the first mover advantage in the serviced residence sector in Central Europe and to roll out its concept over the capital cities in this region.
Julius Meinl stands for tradition, quality, expertise but also innovation and today is one of the strongest brands Austria has ever had – more than 95% of Austrians recognize the Meinl logo with its famous “Mohr“ and in Central Europe the Meinl brand has a similar level of recognition, which will be also a competitive advantage for the serviced residences which shall be operated under the Julius Meinl brand.
Julius Meinl Living can invest across the EU and potentially also in adjacent countries, however its initial focus will be on capital cities such as Prague, Budapest, Bucharest and other Central European capitals as Julius Meinl Living believes that these are currently the most attractive for its business model.
Julius Meinl Living aims to establish itself as a well-known quality brand in the sector and to grow within the next 5 years to at least 15 serviced residences each typically with around 150 apartments in city centre locations that shall provide ancillary services for food & beverage, meetings, relaxing, parking and other services for today’s travel habites.